Mid Year Financial Review: What to Check in June

June marks the halfway point of the year, making it the ideal time for Calgary business owners to step back and assess their financial performance. A thorough mid-year review helps you catch problems early, capitalise on opportunities, and adjust your strategy for the second half of the year.

1. Review Your Year-to-Date P&L

Pull your income statement for January through May (or through June if your books are current). Compare revenue and expenses to the same period last year and to your annual budget. Are you ahead or behind on revenue? Are any expense categories growing faster than expected?

2. Check Your Cash Position

Look at your current bank balance and compare it to the same time last year. Factor in any seasonal patterns — if summer is typically slow, ensure you have enough cash to cover operating expenses through the lean months. If cash is tighter than expected, identify the cause and take action now.

3. Review Accounts Receivable

Run an aging report. How much is overdue? Has the average collection time increased? Follow up on all invoices over 30 days and consider writing off anything truly uncollectible. Stale receivables distort your financial picture.

4. Assess Your Tax Position

Based on your year-to-date income, estimate your annual tax liability. Are you on track with quarterly instalments? If your income is higher than expected, you may need to increase instalments to avoid interest. If lower, you may be overpaying.

5. Review Major Expenses

Look at your five to ten largest expense categories. Are any significantly different from budget or from last year? Common mid-year surprises include: insurance premium increases, subscription creep, higher-than-expected contractor costs, and unplanned equipment expenses.

6. Update Your Forecast

Based on your mid-year review, update your revenue and expense forecast for the remaining six months. A realistic forecast helps you make better decisions about hiring, spending, and investment for the rest of the year.

7. Verify Tax Filings Are Current

Confirm all Q1 and Q2 GST returns are filed, all payroll remittances are current, and any corporate tax instalments are up to date. Being current on all filings reduces stress and avoids penalties.

Castle Provides the Data You Need

Castle Bookkeeping delivers monthly financial statements that make mid-year reviews straightforward. When your books are current, you can make informed decisions instead of guessing. Contact us for a free consultation.